E-commerce will drive India’s software growth: Dewang Mehta

BANGALORE: India is expected to emerge as a major e-commerce services provider

during the next 2-3 years with exports from this sector touching $1 billion by 2002. This

was pointed out by National Association for Software and Services Companies

(Nasscom)

president Dewang Mehta recently in Bangalore while addressing Directions 2000, IDC

India’s 12th Annual Computer Industry Briefing Session.

Arguing that software industry would not be effected in the

post-Y2K period, Mr Mehta said that revenue from Y2K services had not been more than 19

per cent of the total Indian software export market. ``E-commerce and IT enabled services

will offset the shortfall due to the absence of Y2K market during 2000. There could be a

slowdown during October-December 1999, as many companies may prefer to defer their IT

projects till 2000. But, the top 25 companies may go for taking orders to work offline

during the last three months of this year. Therefore, no slowdown is expected in the

software industry in the post-Y2K scenario,’’ said Mr Mehta.

The key to India’s success in software exports during

the post-Y2K world would be new concepts such as Interactive Integration, which combines

any new system with e-commerce. ``The top Indian companies who are experts in legacy

systems and client-server architecture will either have to create a separate e-commerce

division or acquire existing e-commerce companies as making legacy systems web-enabled

would be one of the most potential business areas,’’ Mr Mehta pointed out.

The Nasscom president said that the real boost in domestic

software will come from government spending. ``Software cannot grow in isolation. It has

to permeate in all sections of the society…Somewhere in 2004 the growth rate in

domestic market will catch up with the export market, even though it may take a few more

years the revenues matching in absolute terms.’’

Nasscom is also lobbying with the government for granting

trade visas instead of H1-B visas for software professionals seeking jobs outside the

country. Mr Mehta said that Nasscom would submit a report to the external affairs ministry

and the ministry of commerce soon in this regard

In his address, Cyber Media (India) Ltd. managing director

Pradeep Gupta said that information appliances would be the focus in the future world of

virtual communities. ``Applications will drive technologies in the future,’’ he

said, adding that the new Internet user needed to be understood. ``He could be from a

well-to-do family or a low income group or even a child. You should also know who you are

selling to….Also, the companies should have the image of an Internet

player,’’ said Mr Gupta.

Pointing out to IDC reports, IDC Asia Pacific, computing

systems research, vice president Dane Anderson said India would become the third largest

market in the Asia Pacific region by 2003, after China and Australia, with a compounded

annual growth rate of 28 per cent.

On the growth of Internet commerce, Bharti BT Internet Pvt.

Ltd. chief executive officer N. Arjun said that relevant local content will be one of key

drivers. He also called for the simplification of complex tax laws and reduction of high

duties on PCs and PC components. ``The present level of Internet penetration is very low

and the industry has to play active role in this field,’’ Mr Arjun added.